The effects of raising or lowering corporate tax rates.

[Niyi]

Raising corporate tax rates can increase government revenue and potentially reduce income inequality. However, it can also discourage investment and business growth, leading to slower economic growth and job loss.

Lowering corporate tax rates can stimulate investment and economic growth, but it can also lead to a decrease in government revenue and an increase in income inequality.

It's important to consider the balance between raising revenue and promoting economic growth when setting corporate tax rates.

 

[saoussen57651]

Could you detail some examples how to lower corporate tax rates? It is something possible by a company or by the state? Because what I know state is always increasing tax rates.

 

[Joshua Farrell]

It is actually a weird thing, regarding corporate taxes. One the one hand, it will be obvious that if the company can afford the tax increase, they will increase the prices of their products, to accommodate the increase in tax costs. On the other hand, as seen in the United States of America a number of times when corporate taxes were decreased, revenue shot up as a whole for every company, because people had less taxes to worry about. And interesting fact regarding that, is that during those times when revenue increased for those companies because of less tax, they ended up paying more tax than what they normally would have paid, because of the increase in revenue.

It is one of those things that if you actually investigate what happens with less taxes, you would find out that the companies paying the taxes, end up paying more, because they are earning more. Lower taxes, equate to better tax income for the government, because of the fact that people now have more expendable income to purchase things with.

 

[Kane]

Businesses do not pay taxes from their own pockets. They ultimately make their customers pay the taxes (by either adding VAT or increasing the prices of the products).

 

[Niyi]

In my country, they just shift the tax burden to the consumers by integrating it into the price of the final product.

 

[Good-Person]

I think that corporate tax involves taxing the companies and big businesses. Such kind of industries could help the country and they should pay taxes in order to boost the economy of the country.

 

[Bisolami]

Could you detail some examples how to lower corporate tax rates? It is something possible by a company or by the state? Because what I know state is always increasing tax rates.

I think that corporate tax involves taxing the companies and big businesses. Such kind of industries could help the country and they should pay taxes in order to boost the economy of the country.

It has to do with businesses and companies but there are some of them that find their way not to pay the tax